HIGH COURT OF DELHI
Delhi Development Authority
v/s.
Union of India
W.P.(C) Nos. 19746 of 2005, 1386 of 2007, 605 of 2008,
846 of 2009, 553 of 2010, 356 of 2011
and 426 of 2012
September 10, 2012
ORDER
Sanjiv Khanna, J.
Delhi Development Authority, a statutory body/authority was created by the Delhi Development Act, 1957, to promote and secure development of Delhi, has filed these writ petitions against the Income Tax Authorities namely Assessing Officer and the Director of Income Tax (Exemptions)/Commissioner of Income Tax (Exemptions) who have given directions or approval for initiation of special audit under Section 142(2A) of the Income Tax Act, 1961 (Act, for short).
2. These writ petitions relate to assessment years 2003-04 to 2009-10, as in respect of each of these assessment years, direction for special audit has been issued. The grounds for initiation of special audit in most of the years are similar. It is also the contention of the petitioner assessee that the order of special audit in respect of 2003-04 forms the basis of the subsequent orders. We have heard and are disposing of the said writ petitions by this common judgment. For the sake of convenience, we have treated Writ Petition (Civil) No. 19746-47/2005, as the lead case as the said writ petition pertains to assessment year 2003-04 and is against the first order directing special audit. Wherever required, facts peculiar to each assessment year have been noticed and dealt with.
3. We may note that earlier Writ Petition (Civil) No. 19746-47/2005 was disposed of vide order dated 29th November, 2006 on the ground that clearance/approval of Committee of Disputes had not been obtained, but on Appeal by Special Leave filed by the petitioner herein, the said order was set aside and the matter remanded for fresh decision on merits in view of the judgment of the Supreme Court in Rajesh Kumar and Ors. v. Deputy CIT and Ors. [2007] 2 SCC 181.
4. Before we go to the factual matrix of the present case, it may be relevant to read and consider the provision of Section 142(2A) and examine the decisions of the Supreme Court and High Courts on the scope and ambit of the power under the said Section. Section 142(2A) of the Act reads as under:-
“S. 142 Enquiry before assessment-
